US: Low inventories weigh on existing home sales in November – Wells Fargo

Low Inventories Hold Back November Home Sales Existing home sales fell 2.5% in November. Analysts at Wells Fargo noted is the first decline in five months and they point out that despite the fact that the number of homes sold fell, homes are selling as fast as ever.

Key Quotes: 

“Existing home sales fell 2.5% to a 6.69-million unit pace in November. Existing sales reflect closings and lag pending sales by about two months. The drop was expected.”

“COVID has boosted demand for homes but has also meant that fewer homeowners are willing to put their homes on the market. The imbalance pulled home prices higher, with the median price of existing single-family homes jumping 15.1% from a year ago.”

“The recent surge in prices has brought memories of the housing bubble. Key differences today are the absence of widespread speculation and the higher credit quality of today’s borrowers.”